Many individuals are there who either forgot to lodge a company tax return or ignored it completely. Some of them even are not aware of this, which can lead to many problems in the future. It’s time to learn about the company tax return and what needs to be done during the tax season. Here are a few things that will explain the company’s tax return and what happens if you do not lodge.
What Happen if a Company Does Not Lodge?
If a firm earns more than $18,200 and does not pay anything as tax, there is no need to claim a tax return. But they have to submit non-lodgement advice to the ATO. It shows no need for you to lodge and ensure they do not consider your company with an outstanding return. Without non-lodgement advice, it is assumed that the company needs to lodge and take necessary compliance action to force you to do so. That’s why you should contact the best professionals who can assist in this regard.
Can you Specify The Fine for Not Lodging a Tax Return?
Firstly, a Failure To Lodge (FTL) penalty will be issued if the tax return has not been submitted by the last date that’s mentioned. The fine that the company needs to pay is calculated at the rate of one penalty unit every 28 days. The value that is required to be paid can vary from $222 to $1110. After you make the payment, the ATO will check if you have submitted a reasonable and fair amount. If not, you have to provide the reason behind that when they ask about the same.
Will A Company Get In Legal Trouble For Not Lodging A Tax Return?
Getting in legal trouble is not common in Australia, but the ATO can do so if the company has failed to lodge tax returns. Every aspect is taken into consideration before applying for a prosecution. The maximum penalty for this is the owner might land up in imprisonment for up to a year, or the amount to pay would be $9000. The right thing would be to get in touch with a tax agent who can help with the tax return.
Is There A Penalty For Lodging A Late Tax Return?
After penalties have failed in convincing you to lodge a return, the ATO can issue default assessments. It is an estimated assessment of the income depending on the data that’s present with the ATO. These are estimates and are rarely correct.
So, they show a higher tax liability you owe, as the deductions were not included. You have the right to ask for a default assessment but show the actual tax liability. Simply, arguing with the figures specified by the ATO will not be helpful.
Will, The Company Get Audited For Not Lodging A Tax Return?
If your company is lodging a tax return late, it is believed that you are at risk. The ATO will review and audit all the company’s files. Also, you have to be ready to answer all their questions if they arise. All these things consume a lot of time which can affect the company.
You might not be able to concentrate on other things. Instead of wasting time on this, it is better to lodge the tax return on time. To do so, you can speak with the tax return accountant who has years of experience working here.
Retention of Refund
If you have not lodged a return, you might be retained from getting a refund until the lodge. If the professionals believe you have been engaged in an uncertain situation, they can consider it in exceptional circumstances. But if there are no specific reasons for the delay, you have to face the consequences for that. To avoid all these things, it would be best to lodge the tax return on time.
No Response after Receiving a Final Notice
The ATO might send you a final notice regarding the tax return after failing to respond to their questions. The final notice can be a legal document specifying a particular date of the lodge. If you ignore this date, there is a high chance to face prosecution. Hence, appoint an expert who will remind you about this.
Why Do Individuals Fail to Lodge a Tax Return?
Lodging a tax return is not so difficult, and you can do it independently. If you cannot do so, a tax return expert is always there for your assistance. It is one of the reasons why people tend to ignore all these things. Tax returns can be for the business or your income. By hiring an expert experienced in company tax return Perth, you can avoid failing to lodge it on time.
Missing the Deadline
Being a taxpayer, it is always important to stick to deadlines, as mentioned by the ATO. If you do not consider the last date, there is a high chance your company can be in trouble. Many companies keep all these things for the end, which they should not do. In addition, many citizens of Australia do not know that the ATO can be reasonable when it is about repaying overdue taxes. Till you or your company is lodging the tax returns on time, honestly, they can consider giving you a chance.
Final Thoughts
A suitable way to avoid penalties and other problems regarding the tax return is by clearing the payments on time. Make sure to hire an expert on time that can assist you throughout the year. In that way, it is easy to save time and lodge the tax return on time. Ensure that you do not keep all these things for the last date as a delay might lead to paying fines.
Hence, you should start looking for top tax experts who can help in lodging the tax return. With that, there is less chance you will miss the last date on lodging a tax return.